News / annual-report-for-2018-19

18.12.2019 - Company announcement

Annual report for 2018/19

Today, the Board of Directors of Per Aarsleff Holding A/S has discussed and approved the annual report for 2018/19. 

Profit for the year: 

  • Consolidated revenue increased by 11.1% to DKK 13,453 million (2017/18: DKK 12,108 million)
  • Consolidated EBIT amounted to DKK 503 million (2017/18: DKK 475 million)
  • Construction generated EBIT of DKK 303 million (2017/18: DKK 315 million)
  • Pipe Technologies generated EBIT of DKK 94 million (2017/18: DKK 85 million)
  • Ground Engineering generated EBIT of DKK 106 million (2017/18: DKK 75 million)
  • Cash flows from operating activities with deduction of investing activities (exclusive of investments in securities) amounted to a positive liquidity flow of DKK 497 million
  • Net interest-bearing deposit was DKK 399 million at 30 September 2019
  • Earnings per share amounted to DKK 17.76
  • The Board of Directors proposes a dividend of DKK 5.50 per share of a nominal value of DKK 2 corresponding to a payment of DKK 111 million.

Consolidated profit for the financial year 2018/19 amounted to an EBIT of DKK 503 million compared to DKK 475 million the year before. Earnings expectations were an EBIT of DKK 530 million at the beginning of the financial year and were adjusted downwards to an EBIT of DKK 460 million in January 2019 due to an arbitration loss. After the second quarter of the financial year, profit for the year was adjusted upwards to an EBIT of DKK 480 million. 

EBIT results were in line with expectations. The high level of activity partly compensated for the impact of the lost arbitration proceedings.

Pipe Technologies
EBIT results were above expectations due to a high level of activity and improved profit margins in Germany.

Ground Engineering
EBIT results were above expectations driven by the high level of activity in Denmark.

Order backlog
The company’s order backlog amounted to DKK 17,409 million (30 September 2018: DKK 16,601 million) of which DKK 8,075 million is expected to be carried out in the financial year 2019/20. The order intake of the financial year amounted to DKK 14,261 million.

Outlook for the financial year 2019/20: 

  • In the future financial year, EBIT is expected to be in the range of DKK 560 million, and the revenue level is expected to be approx. 1% up on 2018/19. Investments in property, plant and equipment are expected to amount to approx. DKK 400 million compared to DKK 378 million last financial year.

Construction expects revenue in line with 2018/19 and an EBIT margin of 3.7% compared with 3.2% last financial year (4% adjusted for the recognition of the arbitration loss). 

Per Aarsleff A/S has a high order backlog, however, with a long execution period. Compared to the past financial years, the order backlog consists of several, very large projects with long execution periods. In the future financial year, there will be a high level of activity on the large building projects, e.g. Danske Bank’s new headquarters in Copenhagen, Lighthouse at Aarhus Ø, the tall residential tower of the Carlsberg City and the new Natural History Museum of Denmark in Copenhagen.  It is Group policy that large, complex One Company projects are recognised taking unsettled risks into consideration, resulting in a lower EBIT margin for this share of revenue in the future financial year.  The market for building construction is still characterised by large, single opportunities, and Aarsleff’s focus is on selection, especially concerning capacity and risk management. A lower level of activity is expected due to a stagnating construction market, primarily because several of the large harbour expansion projects have been completed. In the future financial year, our activities abroad will primarily consist of the completion of the expansion of Port of Ystad as well as the income from the activities in PAA Project Finance A/S.

Wicotec Kirkebjerg A/S participates in all the large building projects carried out in One Company collaboration, and the revenue recognition of the projects will affect the EBIT margin in the future financial year. A revenue decline is expected as the completion of the large installation project in the Niels Bohr Building is approaching. Hansson & Knudsen A/S expects an unchanged level of activity, and the focus is on operation and execution in order to improve earnings. However, the market is still characterised by severe price competition.

More large track renewal tenders are expected in the future financial year, creating good opportunities for Aarsleff Rail A/S to maintain revenue at its current high level. The focus is on exploiting opportunities in Norway and Sweden in a controlled growth scenario starting with small and medium-sized projects. 

Revenue in Ístak hf. is expected to decline due to a slowdown in the building activities in Iceland. There is still a few, large opportunities within building construction, also in Greenland, and it is expected that several major construction projects will be commenced in the future years. 

Pipe Technologies expects an increase in revenue of 5% compared to last financial year, and an EBIT margin of 5% compared to 4.9% last financial year. 

In the Nordic markets, primarily Sweden experiences revenue growth. There are some large projects in the pipeline while revenue in 2018/19 was extraordinarily low. In Denmark and Norway, the markets are stable with satisfactory earnings. 

In Germany the market conditions are still good. The activity from the sale of LED equipment and materials is increasing, and the focus is on entering the French market. 

There are positive expectations to the market in Russia, however, a large part of revenue must be contracted for and executed. In Poland, there is a good order backlog which is taken in at a higher margin than previously. 

The strategic partnership with the American company Hammerhead Trenchless was affected by the fact that Charles Machine Works, the owner of HammerHead, has been sold to The Toro Company. This has delayed HammerHead’s sales efforts on the American market. 

Ground Engineering expects revenue in line with 2018/19 and an EBIT margin of 5% compared with 4.9% last financial year. 

In Denmark, a lower level of activity is expected within establishment of construction pits, and it is uncertain how the market for reinforced concrete piles will develop, especially in the last half of the financial year. The lower level of activity in Denmark is expected to be partly compensated for by increased activity abroad where there is a large order backlog, especially in Sweden and Norway. In Sweden, continued high revenue is expected due to an increasing level of activity within large infrastructure projects. However, the market for reinforced concrete piles is still under pressure due to the decline within residential building and this affects the EBIT margin. In Poland, a high level of activity is expected, and the focus is on increasing earnings. The order backlog in Poland is significantly higher than last year. 

The market for pile installation in Germany remains challenged by the lack of onshore wind turbine projects. Neidhardt Grundbau GmbH is expected to continue the positive development with a high level of activity, however, as usual the company has a short order horizon. Also, the new company STB Wöltjen GmbH, specialising in bored piles, is expected to contribute positive results in the financial year. In the UK, a significantly higher level of activity is expected, and there is a really good order backlog. However, it is still uncertain how Brexit will impact market conditions. 

The annual report is published via Nasdaq Copenhagen A/S and attached to this announcement. It is also available on 

Financial calender 2019/20

30 January 2020
Annual general meeting at the Group headquarters, Hasselager Allé 5, 8260 Viby J, at 15:00.

4 February 2020
Dividend paid to shareholders for the financial year 2018/19.                                    

26 February 2020
Interim financial report for the period 1 October 2019-31 December 2019.               

27 May 2020
Interim financial report for the period 1 October 2019-31 March 2020.

25 August 2020
Interim financial report for the period 1 October 2019-30 June 2020.

21 December 2020
Annual report for the financial year 2019/20.